SCHEDULES
SCHEDULE 35Promoters of tax avoidance schemes: penalties
Penalties for inaccurate information and documents
4
1
If—
a
in complying with an information duty F1or a requirement to provide evidence under section 236D(2)(d) or 236F(3)(c), a person provides inaccurate information or produces a document that contains an inaccuracy, and
b
condition A, B or C is met,
the person is liable to a penalty not exceeding the relevant sum.
2
Condition A is that the inaccuracy is careless or deliberate.
3
An inaccuracy is careless if it is due to a failure by the person to take reasonable care.
4
For the purpose of determining whether or not a person who is a monitored promoter took reasonable care, reliance on legal advice is to be disregarded if either—
a
the advice was not based on a full and accurate description of the facts, or
b
the conclusions in the advice that the person relied on were unreasonable.
5
For the purpose of determining whether or not a person who complies with a duty under section 258 took reasonable care, reliance on legal advice is to be disregarded if the advice was given or procured by the monitored promoter mentioned in subsection (1) of that section.
6
Condition B is that the person knows of the inaccuracy at the time the information is provided or the document produced but does not inform HMRC at that time.
7
Condition C is that the person—
a
discovers the inaccuracy some time later, and
b
fails to take reasonable steps to inform HMRC.
8
The “relevant sum” means—
a
£1,000,000, where the information is provided or document produced in compliance with a duty under section 255, 257 or 258 F2, or under Schedule 36 to FA 2008 as it has effect as a result of section 272A in a case where the person required to provide the information or produce the document was at the time subject to a monitoring notice;
b
£10,000, where the information is provided in compliance with a duty under section 261;
9
If the information or document contains more than one inaccuracy, one penalty is payable under this paragraph whatever the number of inaccuracies.